GST Rate Cut from September 22, a Day Before Amazon, Flipkart & Other Ecom Sales: What It Means for Customers?

India's festive e-commerce season is set for a major transformation this year, as both Amazon India's Great Indian Festival and Flipkart's Big Billion Days are scheduled to begin on September 23, 2025 just one day after significant GST reforms come into effect on September 22. The new tax structure is expected to fuel deeper discounts and sharper pricing, particularly on high-ticket and essential items.

GST Reforms Effective September 22, a Day Before E-Commerce Festive Sales Begin

The Goods and Services Tax (GST) Council recently approved a long-awaited rationalisation of tax slabs, reducing many goods into two main brackets - 5% and 18%, while placing a higher 40% rate on luxury and "sin" items like tobacco. Several exemptions were also introduced, with the intent of simplifying India's indirect tax system and making everyday items more affordable.

Retailers Start Slashing Prices Ahead of Festive Sales

As a direct response, manufacturers and retailers have already begun slashing prices or announced they will pass on the tax benefits to consumers starting September 22. Regulatory authorities have allowed revision of MRPs on unsold inventory so that the discounts reflect the new rates in real time.

Amazon Confirms Unmatched Deals and GST Savings This Great Indian Festival 2025

Amazon has confirmed that it is updating its internal systems with the revised GST codes. This ensures that sellers on the platform can seamlessly transition to the new tax structure and extend the benefits to customers in compliance with government guidelines.

Saurabh Srivastava, VP, Categories at Amazon India, said, "The Amazon Great Indian Festival celebrates the spirit of Indian festivities by bringing together customers, sellers, and brands for the country's biggest shopping celebration. With a reduction in GST on millions of products, along with exciting deals already planned by sellers, customers can look forward to great savings this year."

Flipkart Bets on GST Reforms to Boost Big Billion Days 2025 Sales

Flipkart, too, is banking on the tax shift to drive stronger festive consumption. Group CEO Kalyan Krishnamurthy described the GST reforms as a "critical enabler of consumption and inclusion." Speaking at an internal employee event, he said the revised slabs would enhance purchasing power, empower small and medium sellers, and broaden market access during the upcoming Big Billion Days sale.

Electronics Sales Slow as Shoppers Wait for GST Rate Cuts

Interestingly, retailers have noted that sales of electronics and big-ticket items slowed down in anticipation of the new GST regime. Srivastava acknowledged the trend, explaining that customers typically hold back on major purchases just before a big sale - but this time, the GST buzz has made the lull even more noticeable.

"But this time, the GST changes are more pronounced, widely publicised, and strongly backed by the government. Customers are well aware of them, so we expect a bigger spike in these categories from September 22 onwards," he said as per PTI report.

As the countdown to Diwali begins, all signs point to a bumper shopping season driven by a combination of GST-triggered price drops, mega online sales and government-backed structural changes. For consumers, this could be one of the most value-packed festive seasons in recent years.